Reasons Why Nike (NKE) Stock Price Dropped Today

Nike's shares experienced an 8.5% decline in pre-market trading following the release of its third-quarter fiscal results for 2025. The results were disappointing, indicating that Nike's efforts to turn things around were still a work in progress. The company faced challenges as sales decreased, and margins shrank, with revenue dropping by 7% compared to the previous year when adjusting for currency fluctuations. Despite surpassing analysts' earnings per share projections, revenue struggled due to weaknesses in its wholesale business and sluggish demand in North America.

The company's focus on enhancing its product lineup and digital strategy had not yet resulted in significant revenue growth, partly offset by its share repurchase program sustaining profits despite gross margin decline from increased promotional activity. The overall outcome of the quarter was below expectations, with revenue and margin challenges overshadowing the positive EPS results.

Although Nike shares typically have low volatility, the significant 8.5% drop indicates that the news had a notable impact, though it may not alter the market's long-term view of the company significantly. The stock is down 8.2% since the start of the year, trading far below its 52-week high from March 2024.